Analysis of the industry, while the OPEC move intended to stimulate the sluggish rebound in international oil prices, but the production is very difficult to achieve the expected effect of dumbledore. On the one hand, the OPEC production rate is low, only about 1% of global output and economic growth, lack of motivation, the increased demand for crude oil is slow, difficult to change the basic situation of oil city oversupply fundamentally; on the other hand, the U.S. shale oil will regain the opportunity for development, in addition to the United States President elect Trump that will relax outside of American oil limit, because OPEC cut the initiative to make the market share and painstakingly create a rising price trend, will also boost the shale oil production increased rapidly.

As you can see, after the international oil prices slightly warmer has made the shale oil drilling number showing growth. As of December 2nd week, the U.S. oil drilling activity to increase the number of 3 to 477, the highest since January. In the past 25 weeks, the number of active drilling oil has accumulated an increase of 155, once the oil price continued to pick up, will make the shale oil yield increase rapidly, thus bullish effect largely offset the OPEC cut. Moreover, the US shale oil production cost has been reduced by nearly half compared with 2014 levels, more survivable if more U.S. shale oil into the market, which will undoubtedly bring new relationship between oil supply and demand shocks.